National Finance plans OMR22m rights issue

Muscat: National Finance Company has decided to convene an extraordinary general meeting on December 14 to seek approval from shareholders for raising its paid-up capital to OMR49.68 million from OMR27.93 million by way of a rights issue of 217.6 million shares. The rights share will be issued at a price of 127 baisas, which include a share premium of 25 baisas and an issue expense of 2 baisas, according to a disclosure posted on MSM website. This is subject to approval from regulatory authorities.
The company will also seek approval for issuing perpetual bonds worth OMR18.2 million through private placement subject to regulatory approval and authorising the board to undertake all actions necessary to conclude the transaction including approving the interest rate, the number of investors, amount to be allocated to each investor, and appointment of relevant advisors for the transaction.
Another proposal is to seek approval for increasing the share capital of the company from OMR30 million to OMR75 million and approve the amendment to the Articles of Association.
Oman Orix Leasing
The EGM will also consider merger by incorporation of Oman Orix Leasing Company SAOG into the company in accordance with the provisions of the Commercial Companies Law.
The shareholders will also consider a proposal to pay cash payment of 1.2 multiples of book value of Oman Orix Leasing as at December 31 for those who opt for cash.
The company is also seeking approval from shareholders to increase the number of board members from 7 to 9 and consequently approve the amendment the Articles of Association.
Oman Orix Leasing Company will also convene an extraordinary general meeting (EGM) on December 13 at Hotel Muscat Holiday to seek approval for a merger with National Finance, according to a disclosure statement posted on the Muscat Securities Market (MSM) website.
The merger consideration for the shareholders of Oman Orix who opt to receive shares in National Finance will be based on the book value per share of Oman Orix to the book value per share of National Finance, in accordance with each company's audited financial statements, as of December 31, 2017.
Those who prefer a cash offer will get equivalent to 1.2 multiples of the book value per share of the company, as of December 31, 2017.
The board is also seeking approval from shareholders to authorise the board to take the necessary steps to complete the merger between the two organisations.